Thursday, July 18, 2024

Saudi Arabia’s oil price cut negatively impacts the global market

Oil prices are falling after Saudi Arabia cut selling prices for all regions. This decision increases the pressure on an already pessimistic market, while concerns about tensions in the Red Sea and the interruption in oil supplies in Libya are in the background.

West Texas Intermediate (WTI), traded in New York, is down 0.83% at 73.2 dollars a barrel, while North Sea Brent, the benchmark for European imports, is down 0.75% at 78.17 dollars a barrel.

Aramco, Saudi Arabia’s state oil company, reduced the price of a barrel of Arab Light oil for Asia by two dollars, due to a persistent reduction in demand on the market.

The drop in oil prices marks the beginning of the week, after an increase of more than 1% last week. This move comes after a 2023 that saw the first annual loss since 2020, driven by increased supply in countries outside the Organization of the Petroleum Exporting Countries and its allies (OPEC+). There are also concerns that demand growth will slow this year.

The global oil market continues to face significant challenges, with Saudi Arabia responding to the current conditions by reducing selling prices. Uncertainty surrounding oil demand and supply continues to influence price movements, leaving investors attentive to upcoming decisions and developments in the energy market.

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